"[The contract] is a further statement of the UK Government's long term commitment to the defense industry in Scotland and to our dedicated and talented workforce. This contract will support a significant number of skilled workers, their families as well as providing a substantial boost to the local economy in Ayrshire," Mundell said.
Spearfish torpedoes are used by the UK's submarines. Ayrshire, a county in southwestern Scotland, is home to Britain's nuclear submarines stationed at MHNB Clyde, and one of the three operating bases in the United Kingdom. The other two are situated in southern England.
BAE Systems' – the company who has been awarded the contract – said earlier this year that it would cut hundreds of jobs, but later announced they had been secured by the government awarding it a torpedo contract.
According to BAE Systems' the upgrade will increase the Royal Navy's "operational advantage".
"Upgrading the Spearfish Heavyweight Torpedo will provide sophisticated advances for the Royal Navy with increased operational advantage in the underwater domain," UK Maritime Managing Director, John Hudson said.
According to the UK Ministry of Defense, the Spearfish is the most powerful and advanced wire-guided torpedo in the world, capable of targeting surface vessels and submarines. They currently operate from the Royal Navy's Astute, Vanguard and Trafalgar Class submarines.